A Gartner survey found that 87% of respondents plan investments in supply chain resiliency within the next two years, however, cost remains a priority.
“Supply chain executives overwhelmingly recognize the necessity to make their networks more resilient and agile,” says Geraint John, V-P, analyst with the Gartner Supply Chain practice. “At the same time, 60% admit that their supply chains have not been designed for resilience, but cost-efficiency. The challenge will be to create an operating model for supply chains that combines the best of both worlds and also delivers supreme customer service.”
- Three-quarters of respondents believe that the additional costs caused by the investments in resilience and agility will be covered by the supply chain budget.
- 45% of survey respondents think that their customers favor low pricing over domestic sourcing and production.
- Only 30% of survey respondents report that they are shifting from a global to a more regionalized supply chain model.